...The Bank for International Settlements (BIS) was established on May 17th 1930. The BIS is a result of an intergovernmental agreement by Germany, Belgium, France, the UK, Italy, Japan, the United States and Switzerland. The BIS is composed of 60 central banks, which represents nations from around the globe that together make up around 95% of the world’s GDP. When the BIS was established it was responsible for the collection, administration and distribution of reparations from Germany, like it was agreed in the Treaty of Versailles. Between the 1970s and 80s, the BIS was also responsible for monitoring cross border capital flows as a result of the oil and debt crisis. One of the BIS’s purposes was to be some sort of emergency funder to nations that couldn’t provide for themselves anymore or were in some sort of financial trouble. Its mission is to help central banks become more stable, to act as banks for those 60 central banks, and to also foster international cooperation in monetary and financial stability. The BIS has also served as a trustee and agent for the European monetary System back when Europe was trying to have a single currency. The BIS has had many purposes throughout its existence, but its main focus has always been to maintain global financial stability. The BIS has had some major accomplishments. One of which is when it came to rescue Mexico in 1982 and Brazil in 1998 in their debt crisis. The BIS has helped many countries in time of need. They also helped...
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...Gold Standard By phil42 | Studymode.com With the Gold Standard, the US economy would print currency that equaled a specific value of gold. Meaning, you could cash in your money for a specified amount of gold because a unit of currency = a specific amount of gold. The limitations to Governments was that they could not spend what they wanted because the amount of currency in circulation had to correspond to the amount of gold in reserve. Nixon, eliminated the Gold Standard, I think during the Vietnam war. As a result, the currency in circulation today does not have to be backed up by anything, not gold, not anything. That's why we see trillion dollar deficits today. Politicians can spend what they want regardless of the real economic downfalls that eventually have to be dealt with. Nowadays, on a side note, our US debt is fianced by foreign governments such as the Chinese and others. This means most of debt the US government owns is owed to foreign investers. The answer to whether having Gold Standard is good or not is based on who you ask. Economists will have one answer, politicians will have another. The phrase “gold standard” is defined as the use of gold as the standard value for the money of a country. If a country will redeem any of its money in gold it is said to be using the gold standard. The U.S. and many other Western countries adhered to the gold standard during the early 1900’s. Today, however, gold’s role in the worldwide monetary system is negligible....
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...6.0 INTERNATIONAL TRADE FINANCE Learning Objectives: At the end of the subject coverage learners should be able to: • Explain the ways in which international trade is undertaken, settled and financed; • Identify the types of customers engaged in international trade and their needs; • Explain the features and benefits of services provided by banks and other financial institutions in facilitating international trade; • Explain international payment systems and regulations that are in place and the procedures adopted. CONTENTS 1. Introduction to International Trade Finance • The meaning of international trade. • Major parties in international trade. • Reasons for international trade. • Advantages of international trade. • International trade barriers. • The role of banks and financial institutions in international trade. 2. The Foreign Exchange Market • The meaning of foreign exchange market. • Participants in the foreign exchange market. • Functions of foreign exchange market. • The mechanism of foreign exchange transfer. • Relationship between foreign exchange market and money market. • Systems and procedures for inter bank foreign exchange trading. 3. Exchange Rates • Definition of exchange rate. ...
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...era of international expansion and globalization. This new age has brought about shrinking of theof the globe and tighter global communication. The emergence of this new revolution has changed and elevated the roles that financial institutions play in global functions and their importance. It has also increased their significance in managing risks. This paper intends to first define the roles of financial institutions and describe how they are applied to global financial operations. Then it will elucidate the significance of these institutions in managing risks. Defining International Financial Institutions Financial institutions are institutions that act as financial intermediaries and provide their members and customers with financial services and support. Like their counterparts, international financial institutions serve the same purpose, but are institutions by two or more countries and are subject to international laws (International Financial Institutions). Other functions of international financial institutions are stabilizing the exchange rate, regulating currency conversion, economic and social restructuring, and assisting countries in financial crisis. There are various types of international financial institutions that include Bretton Woods Institutions, Regional financial institutions, and Bi-lateral development banks. Some examples of these financial institutions are the International Monetary Fund, the World Bank, Asian Development Bank, European...
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...| 学 院： | 金融管理学院 | 专 业： | 财务管理（中加合作） | 学 号： | 1112041 | 学生姓名： | 周佳诺 | 指导教师： | 张铁铸 | 2015 年 3 月 CONTENT ABSTRACT 1 摘要 2 1 Introduction 3 1.1 Background 3 1.2 Research method 3 1.3 Basic ideas and framework 3 2 The relevant theories of currency internationalization 5 2.1 Currency internationalization important related theory 5 2.1.1 The optimal currency area theory 5 2.1.2 Theory of international trade settlement currency 5 2.1.3 Financial deepening theory 6 2.2 RMB internationalization related definitions 7 2.2.1 The definition of RMB internationalization 7 2.2.2 The basic development policy of RMB internationalization and path 7 2.2.3 The overview of RMB internationalization process 9 3 The main historical experience of currency internationalization 12 3.1 Internationalization of the dollar 12 3.2 The internationalization of EURO 13 3.3 The yen internationalization 14 3.4 Summary of this chapter 15 4 The free trade area construction to promote the internationalization of the RMB 16 4.1 International comparison of free trade area 16 4.1.1 The EU 16 4.1.2 The china-Asian free trade area 16 4.2 The relationship between Free trade and the internationalization of RMB 18 4.2.1 The policies and their interpretation of Shanghai free trade area 18 4.2.2 Marketization of RMB exchange rate 20 4.2.3 The RMB interest rate marketization 21 4.2.4 RMB offshore market 22 4.3 The crisis and the risk of free trade zone...
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...National Bank of Ethiopia MODERNIZATION OF THE NATIONAL PAYMENT SYSTEM IN ETHIOPIA Part 3 Vision and Strategic Framework May 2009 Jan Woltjer Consultant on payments and securities settlement Leila Elmasry and Vladislav Babin (IT-consultants) Version 6 05-25-09 i CONTENTS 1 Introduction 1 2 Mission Statement and Vision 3 3 Guiding Principles 5 4 Main Strategies 9 4.1 Risk reduction 9 4.2 Enlargement of access to banking and payment services 14 4.3 Enlargement of electronic networks of individual banks and interoperability 17 5 Business Process Modeling and Architecture of the New NPS 19 5.1 The central role of electronic data exchange in the new NPS 19 5.2 Centralized clearing of large value payments 21 5.3 Centralized versus decentralized clearing of retail payment instruments other than cheques 22 5.4 Centralized versus decentralized clearing of cheques 24 5.5 Overall architecture of the NPS 25 5.6 The NPS communication network 31 6 Outline of the Strategic Plan 38 6.1 Core elements of the strategic plan 38 6.2 Systems and facilities to be acquired 39 6.3 Efficient use of modern technology to reduce investment costs and to avoid possible underutilization of the systems 39 7 Working out of the Core Elements 43 7.1 Development of a legal framework and physical infrastructure that will Support the new NPS 43 7.2 The communication network 46 7.3 The infrastructure for large value and time critical payments 48 7.4 Payment instrument...
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...capital investment (Investment in short-term financial assets like money market securities between countries to earn interests.) 2. What is the official settlements account of the balance of payments? How are official settlements deficits and surpluses associated with movements in the international reserves of the balance of payments? Official settlement account is the sum of the current account, the capital account, the non-reserve financial account, and the statistical discrepancy. Official settlements offset international reserves. Official settlements surplus increase official reserve assets. Official settlements deficits decrease official reserve assets. 3. Explain why private national saving plus government saving equals the current account of the balance of payments. a. National income on expenditure = C+I+G+X-M b. National income on disposal = C+S+T c. Because expenditure = disposal, therefore C+I+G+X-M=C+S+T d. We can see X-M=(S-I)+(T-G) e. So Current asset equals to private national saving plus government saving 4. Suppose that the following transactions take place on the U.S. balance of payments during a given year. Analyze the effects on the merchandise trade balance, the international investment income account, the current account, the capital account, and the official settlements account. a. Boeing, a U.S. aerospace company, sells $3 billion of its 747 airplanes...
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...2010 1 RMB business in Hong Kong • 2004: Banks offer renminbi services including deposit taking, currency exchange, remittance, debit and credit cards, personal cheques • 2007: Mainland financial institutions may issue RMB bonds in Hong Kong • 2009: Trade settlement and finance 2 Latest developments • 11 Feb: Elucidation of supervisory principles by HKMA • 22 Jun: Expansion of the RMB trade settlement scheme • 19 Jul: Revised Clearing Agreement on RMB business • 17 Aug: Pilot scheme for eligible institutions outside the Mainland to invest in the Mainland’s interbank bond market 3 Expand RMB trade settlement scheme • Expanded RMB trade settlement scheme to cover 20 provinces and cities • Their trade transactions with any part of the world can be settled in RMB • Enterprises in the relevant Mainland provinces and cities can settle merchandise imports, service trades and other current account transactions in RMB • List of eligible enterprises on the Mainland that can settle merchandise exports in RMB expanded 4 Revised Clearing Agreement • Banks can open RMB accounts for companies and organisations, including financial institutions • Removed restrictions on RMB interbank transfers between personal accounts and corporate accounts • Banks can convert RMB for corporate customers for purposes other than for trade settlement, given that they do not square the corresponding open position with the Clearing Bank 5 Pilot scheme for eligible institutions...
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...Report on Bangladesh Electronic Fund Transfer Network: A Study on Prospect of Payment and Settlement System in Bangladesh Prepared by Kafil Uddin Muhammad Zahid Mahmud ID: 80802062 Supervisor Professor (Dr) Khondoker Bazlul Hoque Department of International Business University of Dhaka Date of Submission: November 26, 2015 Department of International Business University of Dhaka November 26, 2015 Professor (Dr) Khondoker Bazlul Hoque Department of International Business University of Dhaka Subject: Submission of Internship Report. Dear Sir With due respect and humble submission I beg state that I want to submit my internship report consist of “Bangladesh Electronic Fund Transfer Network: A Study on Prospect of Payment and Settlement System in Bangladesh” as the study part of which you had assigned me for fulfillment of the course “Internship” of Evening MBA program. May I note here that, there will be no dearth of sincerity on my part to bring the issue under study into proper focus. However, I would like to request you to consider if any error is found in my report. Finally, I would like to request you to permit me to conduct the research on my proposed topic and submit my report on that. Thanks in advance for your kind assistance and advice in this connection. Yours obediently, Kafil Uddin Muhammad Zahid Mahmud ID. 80802062 2nd Batch, Department of International Business University of Dhaka Contact No. 01715720770 Email: kafil_uddin@yahoo.com ii | P a g e ACKNOWLEDGMENT...
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...Contents I. Introduction 3 II. The world bank Group 3 1. The Back ground information and its power. 3 a. The World Bank Authority 3 b. The Background information 3 2. Aims & Objective 4 3. The Funding Source 5 a. Bond Flotation 5 b. Subscriptions fees 5 c. The Loans 6 4. Ownership & Organization structure 6 a. The membership of World Bank Group. 6 b. The leadership position 6 5. Recent Activities about the new president of World Bank. 7 6. The Criticism about the management of the World Bank 7 7. The restoration of Thi Nghe and Nhieu Loc canals 7 III. Bank for International Settlement (BIS) 8 1. Back ground information & Power 8 a. The background information 8 b. The BIS’s Authority 8 2. Objectives 8 3. Funding Source 9 a. Informal way of funding 9 b. The Formal ways of funding 9 4. Ownership & Structure 9 a. The Ownership 9 b. The Structure of BIS 10 5. BIS is immunity to the global regulation 10 6. Experience in Vietnam 10 IV. Asia Development Bank (ADB) 11 1. Back ground information & Power 11 a. The background information 11 b. Asia Development Bank’ power 11 2. Objective &Aims 12 3. Funding Sources 12 4. Ownership & ADB’s structure. 13 5. Recent Activities of ADB on November, 2012 and its criticism 13 6. The support of reform the state own enterprises in Vietnam 13 V. International Monetary Fund (IMF) 14 1. Back ground information...
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...INTERNATIONAL BUSINESSs Name SIDRA IFTIKHAR SECTION: Ah REGISTERATION NO :078 Submitted to sir saqib fareed sheikh GLOBALIZATION Globalization is the process of international integration arising from the interchange of world views, products, ideas, and other aspects of culture. In particular, advances in transportation and telecommunications infrastructure, including the rise of the Internet, are major factors in globalization and precipitate further interdependence of economic and cultural activities. GATT General agreement on tariffs and trade, an international treaty (1948–94) to promote trade and economic development by reducing tariffs and other restrictions. it was superseded by the establishment of the world trade organization in 1995 History of GATT • Following World War II, the victor nations sought to create institutions that would eliminate the causes of war. • Their principles were to resolve or prevent war through the United Nations and to eliminate the economic causes of war by establishing three international economic institutions. GATT, 1947 Because the ITO was stillborn the provisional agreement for the ITO, the General Agreement on Tariffs and Trade (GATT) became the agreement...
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... | 5 | Old payment and settlement system | 7 | Clearing activities in old system | 7 | Difficulties in old system | 9 | New payment and settlement system | 10 | About MICR cheques, its processing ,benefits and strength | 11-14 | About automated clearing house | 14 | Overall contribution over our economy | 16 | Chapter3 - Criticism | 19 | Chapter4 - Conclusion | 20 | Chapter5 - References | 21 | 1. Introduction 2. About Bangladesh banking and the new era 3. Old payment and settlement system 4. Difficulties of old system 5. New payment system Executive Summary This Term Paper is about the “contribution of MICR cheques & Automated Clearing House over our economy”. It is great pleasure for us that banking industry of Bangladesh is growing and modernizing its activities to a great extent. So in my term paper I have tried to demonstrate our new payment and settlement system, which recently adopt new methods and systems. As we know Bangladesh bank launched new MICR cheques as the initiative of automation system to all over banks in our country. So considering the importance of having a modern state-of-the-art payment and settlement system, Bangladesh Bank has actively worked...
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...Members | | Argentina | Central Bank of Argentina | Australia | Reserve Bank of Australia Australian Prudential Regulation Authority | Belgium | National Bank of Belgium | Brazil | Central Bank of Brazil | Canada | Bank of Canada Office of the Superintendent of Financial Institutions | China | People's Bank of China China Banking Regulatory Commission | European Union | European Central Bank European Central Bank Single Supervisory Mechanism | France | Bank of France Prudential Supervision and Resolution Authority | Germany | Deutsche Bundesbank Federal Financial Supervisory Authority (BaFin) | Hong Kong SAR | Hong Kong Monetary Authority | India | Reserve Bank of India | Indonesia | Bank Indonesia Indonesia Financial Services Authority | Italy | Bank of Italy | Japan | Bank of Japan Financial Services Agency | Korea | Bank of Korea Financial Supervisory Service | Luxembourg | Surveillance Commission for the Financial Sector | Mexico | Bank of Mexico Comisión Nacional Bancaria y de Valores | Netherlands | Netherlands Bank | Russia | Central Bank of the Russian Federation | Saudi Arabia | Saudi Arabian Monetary Agency | Singapore | Monetary Authority of Singapore | South Africa | South African Reserve Bank | Spain | Bank of Spain | Sweden | Sveriges Riksbank Finansinspektionen | Switzerland | Swiss National Bank Swiss Financial Market Supervisory Authority FINMA | Turkey | Central Bank of the Republic of Turkey Banking...
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...Foreign exchange services are provided by many banks around the world. Foreign exchange services include: * Currency exchange - where clients can purchase and sell foreign currency banknotes. * Foreign Currency Banking - banking transactions are done in foreign currency. * Wire transfer - where clients can send funds to international banks abroad. currency exchange[1] (American English) is a business whose customers exchange one currency for another. Although originally French, the term bureau de change is widely used throughout Europe, and European travellers can usually easily identify these facilities when in other European countries. It is also common to find a sign saying "Exchange" or "Change." Since the adoption of the euro, many exchange offices incorporate itslogotype prominently on their signage. The term bureau de change is not used in the United States.[citation needed] Instead, the terms used in the United States and in Canadian English are currency exchange and sometimes money exchange, sometimes with various additions such as foreign, desk,office, counter, service, etc., for example foreign currency exchange office. Location : A bureau de change is often located at a bank, at a travel agent, airport, main railway station or large stores— namely, anywhere there is likely to be a market for people needing to convert currency. So they are particularly prominent at travel hubs, although currency can be exchanged in many other ways both legally and illegally in...
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...B) Regulatory Oversight page 8 IV) Depository-Taking Institutions. page 9 V) Banking Issues and Challenges Prospect. page 10 Conclusion page 12 Sources page 12 Annexes page 13 Introduction For years ago, South Africa has been facing a lot of racial, political and demographic problems. On the first hand, this country must face these elements and on the other hand it must still working to become a powerful economic country in the world. With this report we are going to develop the Financial System of South Africa which is a key sector in the country. The South Africa Gross Domestic Product is worth 277 billion dollars or 0.45% of the world economy, according to the World Bank. While it contracted 2.80% over the last 4 quarters, the economy was expected to move back into growth in the last quarter of the year and GDP growth of 1.5% is forecast for 2010, rising to 3.2% by 2012. South Africa has a two-tiered economy; one rivaling other developed countries and the other one with only the most basic infrastructure. It is therefore a productive and industrialized economy that exhibits many characteristics associated with developing countries, including a division of labor between formal and informal sectors and an uneven distribution of wealth and income. The primary sector, based on manufacturing, services, mining, and agriculture, is well developed. [pic] The most important economic areas...
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